Spelinspektionen (SGA), Sweden’s gambling watchdog, has issued warnings and penalties to three licensed operators, fining them a total of SEK 19 million ($2 million) after uncovering severe deficiencies in their anti-money laundering (AML). Such enforcement actions are not uncommon for the regulator, especially as Sweden continues its ongoing efforts to ensure operator accountability and protect consumers from gambling-related harm.
The Companies Were Overly Lax with Their AML Routines
The SGA’s latest enforcement action identified TSG Interactive PLC, Betsson Nordic Ltd, and Snabbare Ltd for their failures to conduct adequate checks on customers and their financial activities. Although the government recently raised the maximum fines for such violations, the offenses occurred before the amendments came into effect, capping the penalty at the old threshold of €1 million ($1.14 million).
This newest enforcement initiative involves some of the industry’s leading brands. TSG Interactive, pokerstars.se’s parent company, faces a SEK 7 million ($730,000) fine. According to the regulator, the company failed to gather enough details on the origin of players’ funds. Consequently, the firm could not effectively assess potential money laundering risks associated with player behaviors.
The company has not been able to determine and assess whether the customers’ activities and transactions were legitimate or whether they posed a risk of money laundering.
SGA statement
Betsson, one of Sweden’s gambling heavyweights, also faced similar penalties. The operator, which owns betsson.com, must pay a SEK 6.5 million ($680,000) fine. Similar to TSG, the regulator found that Betsson did not perform adequate background checks on players. Snabbare Ltd, the third offending company, received a SEK 5.5 million ($580,000) penalty due to its own deficiencies.
Sweden Maintains Its Commitment to Consumer Safety
According to the SGA, lax financial checks could allow money laundering or suspicious transactions to pass undetected. The regulator routinely warns that deficiencies within gambling companies’ internal routines could violate Sweden’s AML laws, leading to warnings and fines. Repeat offenders face even harsher penalties and may lose their license to operate in Sweden.
These enforcement actions come at a time when regulators are grappling with low levels of public awareness about the licensing system. A survey conducted by Enkätfabriken in late 2024 revealed that 72% of Swedes were unable to determine whether an operator was regulated in the country. Channelization rates have also slipped below the government’s target of 90%, and rest between 69% and 82%.
While regulated operators face constant compliance checks, the Swedish government is also cracking down on black market gambling, recently launching a regulatory review aimed at tightening restrictions on unauthorized operators. The SGA has signaled it will not hesitate to take action, noting that public trust in the system depends on its diligence.